The Social Security cost-of-living adjustment for 2027 could climb higher as new government data shows a jump in inflation and gasoline prices, according to one new estimate.
The cost-of-living adjustment, or COLA, could be 3.2% in 2027 due to sharply rising gasoline prices, estimates Mary Johnson, an independent Social Security and Medicare policy analyst, based on March consumer price index data released on Friday that shows inflation climbed to the highest level in nearly two years.
That is up from a 1.7% COLA increase Johnson had forecast in March.
Social Security and Supplemental Security Income beneficiaries receive an adjustment to their benefits each year through the COLA, which is aimed at helping to ensure that inflation does not weaken the purchasing power of their benefits.
Separately, the Senior Citizens League, a nonpartisan senior group, estimates the COLA could be 2.8% in 2027 based on the latest inflation data, unchanged from its 2.8% forecast in March.
